Federal Infrastructure Minister Catherine King on Thursday revealed the federal government would no longer fund five infrastructure projects in South Australia – and 50 across the country – following a review of the nation’s infrastructure investment pipeline.

The $250 million Hahndorf Township Improvements and Access Upgrade was the highest value South Australian project to lose funding, with the Commonwealth withdrawing its $200 million (80 per cent) funding share.

The $202 million Truro Bypass, another 80 per cent Commonwealth-funded project, also lost its federal money.

But State Infrastructure and Transport Minister Tom Koutsantonis said the Truro Bypass – which was planned to reroute trucks along the Sturt Highway away from Truro’s main street – was still “very viable”.

“Given that this project is now not being funded, it doesn’t mean that it’s cancelled,” he told reporters on Thursday.

“We’ve done a lot of planning work here. This project, long term, is very very viable, in my opinion, and it’s something we should continue to push from the Commonwealth government.”

Infrastructure and Transport Minister Tom Koutsantonis. Photo: Jason Katsaras/ InDaily

Koutsantonis also revealed on Thursday that the state government has spent around $50 million on planning and compulsory acquisitions for the projects the federal government was no longer funding.

He said the federal government has agreed to reimburse the state government that money, arguing taxpayers should feel “aggrieved”.

A government spokesperson confirmed to InDaily today that 20 compulsory acquisitions – almost all of them in non-residential farmland – were made for the Truro Bypass.

A further seven acquisitions were made for the Mount Barker and Verdun interchange upgrades, which were part of the $250 million Hahndorf project.

“We are disappointed at the removal of Commonwealth funding from these projects,” the spokesperson said.

“However, these acquisitions remain necessary to secure land for future infrastructure opportunities.

“The State Government believes these projects are meritorious and will continue to petition for federal funding as part of annual budget processes.”

It’s understood the former landholders could regain access to the compulsory acquired land in the interim.

An upgrade of Hahndorf’s main street was proposed as part of the $250 million Hahndorf project. Photo: Tony Lewis/InDaily

A $20 million overtaking lane upgrade of Main South Road between Myponga and Cape Jervis also lost $16 million of federal funding on Thursday.

A $2 million budgeted upgrade of Onkaparinga Valley Road’s intersections with Tiers Road and Nairne Road at Woodside in the Adelaide Hills was also scrapped in the review.

Koutsantonis said the Commonwealth Treasury informed him that the cost of the Onkaparinga Valley Road upgrade “was actually 20 times what was budgeted”.

“So, $2 million for the improvements… on those intersections upgrades and the freight outcomes and the road widening was actually nowhere near what was budgeted,” he said.

“So, you had a community there that were promised all these works will be delivered for $2 million.

“Quite frankly, that was politics at its worst. Those projects could not be delivered for that amount of money.”

A $20 million roundabout upgrade of the Old Belair Road and James Road intersection also lost money, as announced by the state government in June.

The withdrawal of money for the Hahndorf upgrade, which included upgrades to the Verdun interchange, Mount Barker interchange and Hahndorf’s main street, prompted backlash from Adelaide Hills MPs Rebekha Sharkie and Dan Cregan.

Sharkie called on the federal government to reconsider its decision, saying it showed “a complete lack of understanding and respect for my regional community”.

The RAA, the state’s peak motoring body, also said it was “disappointed” with the project cuts, particularly the Truro Bypass.

“The Truro Bypass is a key freight route and the project would have improved freight productivity and made that stretch of road safer,” the RAA said.

“Truro is an important part of the national road network and those works will still need to be completed.

“In addition, the Mount Barker interchange upgrade and work at Verdun to provide a heavy traffic alternative, both included in the Hahndorf project, are key opportunities to make important major local thoroughfares safer.”

The RAA welcomed the federal government’s committing an additional $2.7 billion for the North-South Corridor, adding to the Commonwealth’s existing $4.9 billion in funding for the project.

The extra money means the $15.4 billion Torrens to Darlington stage of the South Road project is fully funded between the state and federal government.

The federal infrastructure review determined the five South Australian projects that will no longer be funded “[did] not demonstrate merit, lack any national strategic rationale and do not meet the Australian Government’s national investment priorities”.

“In many cases these projects are also at high risk of further cost pressures and/or delays,” the review stated.

King said on Thursday the cuts were to projects that were not realistically going to be delivered with the available funding, had made little to no progress over a significant amount of time, or did not align with national priorities.

“(The infrastructure review) painted a sad and frankly sorry picture of the health of our infrastructure investment pipeline,” she said.

“From now on, the Australian government’s investment infrastructure will focus on productivity, sustainability and liveability.”